- Bearish sunflower oil: India’s November sunflower oil imports slumped 44% m/m to a two-year low as buyers switched to cheaper palm oil.
- Bearish Black Sea origination: Weaker Indian demand pressures Black Sea sunflower oil prices as exporters from Ukraine and Russia face reduced competitiveness versus palm oil.
- Demand shift in vegoils: Total Indian edible oil imports fell 11.5% m/m, with notable declines in sunflower, soybean, and rapeseed oil offset by modest gains in palm oil.
Indian Sunflower Oil Imports Plummet to Two-Year Low
India’s sunflower oil imports dropped sharply in November, falling 44% month-on-month to 145,000 tonnes, the lowest level in two years. The pullback reflects heightened price sensitivity among Indian processors, who are increasingly favoring cheaper alternatives in the global vegetable oil complex.
As sunflower oil became less competitive against rival oils, Indian buyers shifted their purchases toward palm oil, while trimming volumes of higher-priced soft oils such as sunflower and soybean oil.
Indian Edible Oil Import Mix – November Overview
| Oil Type | November Import Volume (tonnes) | Month-on-Month Change |
|---|---|---|
| Sunflower oil | 145,000 | -44% |
| Palm oil | 630,000 | +4.6% |
| Soybean oil | 400,000 | -12% |
| Rapeseed oil | 5,000 | Approximately -50% |
| Total edible oil imports | 1,180,000 | -11.5% |
Total Indian edible oil imports in November declined to 1.18 million tonnes, down 11.5% from the previous month and marking a seven-month low. Within the basket, palm oil was the only major category to post growth, with imports rising 4.6% m/m to 630,000 tonnes on the back of its price advantage.
Softer demand was evident across other oils: soybean oil imports fell 12% to 400,000 tonnes, while rapeseed oil inflows were cut roughly in half to just 5,000 tonnes. The pronounced contraction in sunflower oil volumes underscores how quickly Indian buyers can re-optimize their import mix when price spreads move against soft oils.
Market Impact and Price Outlook
The downturn in Indian sunflower oil demand is distinctly bearish for Black Sea exporters. India is a core outlet for Ukrainian and Russian sunflower oil, and the latest data signal that current Black Sea price offers are uncompetitive versus palm oil for price-sensitive buyers.
In response, origin sellers in the Black Sea may be forced to lower offer levels or adjust marketing strategies to recapture lost volumes. The relative price spread between sunflower oil and palm oil will remain a key driver of future trade flows, with any narrowing of the differential likely to be closely monitored by traders seeking to gauge the potential for demand recovery into India and other cost-conscious destinations.
Source: Market Data
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